Physical verification of units under PMEGP

Dehradun, Feb 15 (KNN) MSME Ministry today said it will conduct evaluation studies for carrying out physical verification of the units which got benefits under the Prime Minister’s Employment Generation Programme (PMEGP) . The studies will ascertain whether the unit is set up as per scheme norms. In case it is found that the unit is not working as per the norms of the scheme, then the margin money is called back by KVIC. “The Khadi and Village Industries Commission (KVIC) requires Central /State Government agencies/Autonomous organizations funded by Central/State Government having proven track record in conducting Evaluation Studies/Surveys etc. for carrying out physical verification of PMEGP units sanctioned under the scheme to ascertain whether the unit is set up as per scheme norms,” KVIC said in a notification today.Approximate number of units to be physically verified for the year 2011-12 may be around 894 units in Uttarakhand.Ministry of MSME had launched PMEGP which is being implemented through KVIC, KVIBs and DICs in urban and rural areas. Under the scheme unemployed beneficiaries in rural areas may set up the project up to Rs 25.00 lakhs by availing Bank Finance through Public sector banks as well as cooperative and private banks in the country. KVIC will be extending Margin Money subsidy ranging from 15-35 per cent depending on the financial range of the project and the social category of the beneficiary.As a part of the scheme, before Margin Money subsidy is adjusted in the account of the beneficiary, KVIC is required to conduct physical verification of the unit to confirm whether the unit is set up as per the norms of the schemes and is working satisfactorily.“In case it is found that the unit is not working as per the norms of the scheme, then the margin money is called back by KVIC,” the notification said.Otherwise it is adjusted to the account of the beneficiary,” it added.KVIC had been conducting physical verification through its technical staff in the field. In view of the large number of projects expected under PMEGP and the inadequate staff available, KVIC has proposed to go in for outsourcing agency for physical verification.